No, they didn't sell out, but Disney is being their usual selves:
1) Disney is repeatedly strong-arming other Peter Pan licenses who own valid agreements with the hospital, and acting like they own Peter Pan, when they really only have animation rights.
2) Disney had a live-action Peter Pan movie in the works, but tried to get it for free (even though they only have animation rights) and refused to pay the hospital a cent. I guess their PR guys and lawyers told them to back off, and rather than pay those sick kids a dime, they're likely shelving the movie and all related items.
3) Disney tries to market the Peter Pan name like they own a million licenses, and steadfastly refuses to give any proceeds to the hospital. I believe some big-name lawyers jumped in pro bono awhile back, which is why Peter Pan clothing, dolls, etc. aren't on retail shelves anymore.
It's pretty sick really, when you think of all the good things the hospital does, the sick kids laying in the beds, and Eisner jet setting around the world, burning money, and looking for any way to screw the hospital out of receiving a cent.